Summary: An optimization model for determining optimal or near-optimal locations and transmitting powers for a fixed number of base stations in a cellular communication system is presented. Traffic demand is assumed to have a stationary non-uniform distribution and is modeled using a demand grid. Demand is allocated to the base station receiving the strongest signal. Physical restrictions to the location of base stations, such as rivers, landmark buildings and parks are excluded as infeasible areas. Three objectives are considered: (a) maximization of covered traffic demand defined in terms of signal strength and co-channel interference, (b) minimization of blocking probability and (c) minimization of total cost. These are subsequently combined in a non-linear and non-smooth goal programming objective function which is optimized using the Neider-Mead down-hill simplex algorithm. The model is implemented using Matlab and illustrated in a fictitious microcellular system for the Boston downtown area.
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